Domestic steel makers are grappling with challenges such as land acquisition, delayed environmental approvals and raw material supplies, which have also affected foreign players.

Last year, Posco and ArcelorMittal pulled out Rs 80,000 crore of proposed investments in two big-ticket projects, citing inordinate delays, land acquisition problems and lack of secure supplies of iron ore, a steel-making ingredient.

NRI Lakshmi Mittal-headed ArcelorMittal's planned steel plant in Odisha was among the biggest foreign direct investment proposals India had attracted. Posco of South Korea scrapped a plant that it sought to build in Karnataka.

The grouping of domestic steel majors will also strive to promote steel consumption, which is low in India, and campaign for "infrastructure" status for the industry.

India's per capita consumption of steel in 2012 was about 57 kg compared with the global average of 217 kg, according to the World Steel Association.

The steel makers will seek exemption for steel from free-trade agreements, especially with Japan and South Korea, to ensure that the alloy is not "dumped" in the country.

The grouping will ask for ministerial help to ensure sustainable promotion of steel exports and to counter trade retaliatory measures on outbound shipments.

The federation also wants bans on the export of mineral resources and the use of asbestos.